Hut 8 reports US$250M buybacks as AI buildout advances

Bitcoin sales have funded US$250 million of share repurchases while AI data-centre construction advances toward its first delivery in 2027. Hut 8 Corp. TSEHUT NASDAQHUT, a Miami-based power, data-centre and computing operator, reported on Wednesday that its AI portfolio has 1,330 megawatts of utility capacity under construction.

The Nov. 4 results put expected base-term contract value across the AI portfolio at approximately US$26.6 billion. That is future contracted business: initial data-hall delivery at River Bend remains targeted for the second quarter of 2027, followed by Beacon Point's first phase in the third quarter.

Before the announcement, Hut 8 shares NASDAQHUT closed at US$63.75 on Nasdaq at 4 p.m. EST on Nov. 3. Its Toronto shares TSEHUT were C$88.90 at 4 p.m. EST on Nov. 3, so both prices precede the results.

For the third quarter of 2026, Hut 8 reported US$68.4 million of revenue from ASIC computing, AI cloud and traditional cloud services combined. Managed services contributed US$1.3 million and colocation services US$1.4 million; those operating businesses remain distinct from the AI campuses awaiting delivery.

Bitcoin Sales Funded Completed Repurchases

During the third quarter of 2026, Hut 8 repurchased US$74.7 million of shares. Another US$175.3 million was repurchased after quarter-end, according to the Nov. 4 release. Together, the purchases retired approximately 3.34 million common shares, completing the earlier authorization.

The company sold approximately 954 bitcoin during the third quarter of 2026, generating US$74.8 million of net proceeds to fund repurchases. After quarter-end, another approximately 2,148 bitcoin generated US$175.4 million for additional purchases.

Hut 8 also increased its repurchase authorization to US$1 billion after quarter-end, according to the Nov. 4 release. The larger authorization permits further purchases; the completed transactions total US$250 million.

"And our shareholders now own a larger share of a growing platform following share repurchases funded with Bitcoin from our balance sheet," Hut 8 chief executive Asher Genoot said in the release.

"And our shareholders now own a larger share of a growing platform following share repurchases funded with Bitcoin from our balance sheet," Hut 8 chief executive Asher Genoot said in the release.

Hut 8 completed the sale of its traditional cloud business during the third quarter of 2026 as part of an exit from activities outside its core strategy. The buyer signed a multi-year colocation agreement that keeps the infrastructure hosted at Hut 8's Canadian data centres.

Project Financing And Parent Liquidity Differ

Hut 8's Sept. 28 financing announcement described US$7.5 billion of non-recourse, fully amortizing investment-grade project financing for development and construction at River Bend and Beacon Point. Its new US$1.07 billion senior secured revolver provides separate liquidity at the parent company.

The four-year revolver was undrawn at Sept. 30, according to the Nov. 4 results. Hut 8 subsequently issued US$3.9 million of letters of credit under it, while continuing to evaluate financing structures for Beacon Point's second phase.

Genoot said Hut 8 expects the campuses to be funded entirely at project level, without parent equity issuance or recourse debt. That remains a funding expectation for the full buildout, while the Nov. 4 release specifically identifies Phase 2 financing as work still advancing.

The approximately US$6.6 billion cash-and-investment total reported at Sept. 30 combines unrestricted cash with restricted cash, cash equivalents and restricted short-term investments. It therefore cannot be treated as an equivalent amount of freely deployable parent cash.

Construction Capacity Excludes Earlier Pipeline Stages

At Sept. 30, the 1,330 MW under construction comprised River Bend's 330 MW and Beacon Point's 1,000 MW of utility capacity. Beacon Point's two leases each cover 352 MW of IT capacity, a different measure from the electricity capacity serving the campus.

The second Beacon Point lease carries approximately US$9.8 billion of expected base-term contract value, bringing the campus total to US$19.6 billion. Phase 2's first data hall is targeted for the second quarter of 2028, a year after River Bend's targeted first delivery.

Hut 8's broader pipeline totaled 7,859 MW at Sept. 30, including 3,180 MW under exclusivity. Another 3,300 MW was under diligence, so the headline pipeline includes capacity at substantially earlier stages than construction.

The sector already has an example of the transition into recognized rent. Cipher Digital Inc. NASDAQCIFR, an industrial-scale data-centre developer and operator, reported its first HPC lease revenue on Nov. 2 after rent commenced at Black Pearl.

That first recognition of HPC lease income puts Cipher at a different delivery stage from Hut 8's scheduled AI campuses. Cipher said additional data halls would come online through the end of 2026.

Read more: Cipher Digital reports US$27M revenue as first HPC lease income begins

At River Bend, Hut 8 reported completed structural steel and building foundations across all four halls, plus initial energization of the campus substation. Its next delivery test is the first data hall in the second quarter of 2027.